August CMBS remittance data showed that three loans backing the JPMCC 2006-CB15 transaction were liquidated. The loans totaled $42.9 million.
These liquidations have resulted in losses worth $35.1 million, according to a Bank of America Merrill Lynch report released today.
Even though the assets sold for values that were mostly in line with their recent respective appraisals –$14.9 million combined proceeds compared to $15.7 million combined appraisal values – an added $7.1 million of liquidated-related fees were recognized. This left merely $7.8 million of principal proceeds for bondholders, according to BofA Merrill.
The $80 million Presidential Tower loan, which is backed by an office property in Arlington, VA and made up 2.2% of the JPMCC 2007-CB18 offering, was also liquidated, the report said.
Gross proceeds were $53.7 million, or $161 per square feet, which slightly exceeded the most recent $45.4 million appraisal. Analysts noted that the net proceeds to the trust were $50.8 million, which, after $3.8 million of liquidation-related expenses, left $47 million of principal to pay bondholders.
In terms of the impact on the transaction, roughly $7.7 million of unscheduled principal from the liquidation of two of the loans from JPMCC 2006-CB15 were applied to the A3 and ASB bonds, analysts said.
About $86,000 of proceeds from one of the smaller loans, together with $206,000 of scheduled principal, were applied to the offering's A1A class. The realized losses resulted in principal write-downs to the G and H classes. The outstanding factor on the G class is 41%. Moody’s Investors Service and Standard & Poor's originally rated the class 'Baa2'/'BBB', respectively.
In the JPMCC 2007-CB18 deal, the $47 million of unscheduled principal plus close to $2.2 million of scheduled principal was applied to the A3 class, analysts noted.
The $33 million of realized losses were applied to the G class, which lowered its factor to 25%. This bond was also originally rated 'Baa2' by Moody's and 'BBB' by S&P.